At Tweddell Goldberg, we work on a fee-only basis. We charge you either a percentage of the assets we manage for you, or occasionally on an hourly basis. To us, this seems most fair. Some financial advisors work for commissions, which often provides them incentives to sell you products you may not need. Other advisors are fee-based, which means that they take fees for some products and commissions for others. We don’t think either of these two options is investor-friendly.
As a Registered Investment Advisor with the Securities and Exchange Commission, Tweddell Goldberg is required to act as a fiduciary for our clients. This is a legal—and, to us, an ethical—standard. In deciding how to invest your money, we must treat your money as prudently as if it were our own. This is a relationship of special trust and confidence. We are required to act with undivided loyalty to our clients.
Stockbrokers and insurance salesmen are different. They are obliged merely to ensure investments are “suitable” for you. Their chief loyalty belongs to their employer. Some try to have it both ways. When they consult with you, they are fiduciaries. But when they buy and sell securities for you, they are salespeople—not fiduciaries.